Tuesday, January 20, 2009

Canada, Mexico Surpass U.S. in Intermodal Rail Growth in 2008

Canada, Mexico Surpass U.S. in Intermodal Rail Growth in 2008
(CIFFA eBulletin)


Canadian and Mexican intermodal railway volumes grew while U.S. volumes fell last year, according to statistics released by the Association of American Railroads (AAR). The AAR reported that the number of intermodal containers moved by the major U.S. railroads dropped 4.2% in 2008 to 9.03 million units, while major Canadian railway intermodal growth was up 1.4% to 2.46 million units and the major Mexican railway intermodal growth was up 6.6% to 260,399 units.

Commentary: On the surface this appears surprising however at the same time government regulatory realignments and efficiency or productivity improvements in either Canada (where revisions were on the books in 2007) or Mexico might account for this shift. At the same time improvements in truck traffic corridors in the US (under development) could also be a factor as well as declining net bulk shipments in the US with bulk shipments in Mexico and Canada taking up the slack.

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